Shark Tank Investor Mark Cuban Says Owning Esports Team in U.S. is Bad Business
In a recent interview, Dallas Mavericks owner and Shark Tank investor Mark Cuban says owning a U.S. based esports team is "awful business."
There is no question that the world of esports is growing. With numerous events across a few different genres, it seems competitive gaming is only going to get bigger. But is there as much money in esports as some initially thought? In the eyes of Shark Tank investor and Dallas Mavericks owner Mark Cuban, there really is not.
In an interview with Fair Game’s Kristine Leahy, she mentioned that Cuban would not purchase a League of Legends team last year because of player overload, which Cuban agreed. She then followed that statement by asking, “Do you still think that?” Cuban answered, “Yeah, absolutely,” and gives a couple of reasons for his decision.
The first reason Cuban did not purchase a League of Legends team last year seems to be tied to player health. Since players have to be constantly aware of the changes to a game’s meta, Cuban says, “it’s so competitive, and it’s so mentally and physically straining, that it’s brutal.”
The second reason has to do with the economics of esports. While Cuban does believe that esports is still growing and is a good business as a whole, owning a team in the United States is an “awful business.”
“I think a lot of people who bought into teams — not the esports themselves — had no idea how bad a business it was. No idea.” says Cuban. “In aggregate, it’s a good business. Is it growing? Yes. But domestically here in the United States, it’s an awful business. Owning a team is an awful business.”
So, where is the best place to earn money in esports? Cuban’s answer will surprise no one. “Being in Asia, there’s money. If you’re in Korea, there’s tons of money there. It’s real. If you’re in China, there is money there,” says Cuban. “Here, not so much.”
Mark Cuban is obviously no stranger to the world of esports. Especially since he owns NBA 2K League team Mavs Gaming. The esports industry may be growing, but if you’re planning on purchasing a U.S. based esports team, it may be a good idea to hold off on that investment.